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Technology Stocks : Quarterdeck: Making a Striking Comeback!

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To: Brendon Woirhaye who wrote (2872)5/8/1998 12:37:00 PM
From: charles moore  Read Replies (1) of 3307
 
This might have been mentioned before but I havent the time to go back through all the threads.I finally got to look at the figures ending 12/31/97 for QDEK.Comparing it to a year earlier there were some improvements in expenses. I still dont want to try and guess the number of shares outstanding two or three months from now but QDEK uses 43 million and a fully diluted at 67.4 or thereabouts so I guess this would be the worst scenario at fully diluted.

The same quarter of the previous year had larger expenses and also a large charge to restructuring. What is interesting here is that QDEK earned 4 million more the same quarter of the previous year.Net Income for 12/31/97 was 316,000 so I thought it would be interesting to see what happened if they would have made 4 million more as in the previous time. I realize that there is a Cost to making revenue but lets say all things equal then we will add the 4 million and get 4,316,000 divided by 43 million and 67.8 million. Just this addition of 4 million would have made per share earnings of .09 in the first case and .06 in the latter so 4 million only made a difference of .03 and it would seem that .06 for a few quarters would support a price of 4 and .09 a price of $6- $8.

The bad news here is that unless earnings were more dramatic it would stagnate at that point and the only way to get a good uptick would be 1. Revolutionary products or a lot of products with a good stream of Income.
2. Less number of shares.
3. Some combination of the above.

Of course I havent looked at the most recent quarters but it would seem that this is what we are looking at.

Charles
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